The złoty weakens in anticipation of a sharp cut in the NBP. The euro rate remains in a "channel"

Today the Monetary Policy Council meets, which will most likely cut the NBP interest rates sharply. In anticipation of this decision, the euro exchange rate started to rise, but for now it has remained in the spring trend channel lateral.

After the May meeting The Monetary Policy Council is expected to cut interest rates by 50 basis points This would be the first cut since October 2023. Futures market has been discounting such a move for a month now, since the famous press conference of the President of the National Bank of Poland, Adam Glapiński . Now the question is: Will it be just two cuts or will we see the beginning of a longer cycle? loosening of monetary policy in conditions of inflation still significantly exceeding 2.5 percent NBP target.

On Tuesday at 10:10 the euro was more expensive 1.4 groszy , reaching the rate of 4.2732 PLN. Looking at a slightly broader perspective but it doesn't change much. The euro has been moving sideways for a month, fluctuating in the range of 4.20-4.30 PLN. This range has remained for three weeks narrowed to the range of 4.25-4.30 PLN.

- In the coming days, the national focus will be on monetary policy, but it will not happen today. In an empty calendar at home and abroad, stabilization is the most likely valuations on the FX and FI markets - Bank Pekao analysts assessed in their morning report.

We are also waiting for further decisions on the euro-dollar pair, whose prices stabilized around 1.13 after the March-April jump USD. On the Polish market this meant the dollar at 3.7629 PLN. That is, a similar price as the day before.

Swiss franc It was valued at PLN 4.5720, so there were no major changes compared to the previous year. Monday's closing prices. For the pound The British one had to pay 5.0188 PLN, which is 1.6 grosz more than the day before.

KK

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